Housing Prices and Taxes

Recently, i've been seeing the woe is me Millennials complaining that their future was stolen, and other generations had it so much easier. True, the US has declined, and opportunities are more limited than they used to be (wait for what is coming, yes it does get worse).

They will say stuff like: the same house you bought for $100K now costs $400K. On the surface, that is true - but that is the wrong way to look at it.

A person bought a house (let's say in 1987) with a 5% 25-year mortgage (the mortgage rate in 1987 was more like 9+%). Straight inflation alone of December 1987 price would put it at $264,896.88 (yes, the US dollar lost more than 63% of its purchasing power since 1987). Once you figure out that they spent 169+K on the mortgage, the prices look a little different. Then you take into account property tax, selling fees, and the gain is less. It is not reselling a $100K house, it is selling a $200+K house (w/at least $264K value). But why is it selling for $400K? See below for some potential reasons.

So why has real estate "gone up in price"? 

Just Saying 6 - or something

 

Welcome the newest addition to my Just Saying family - Himeji Castle. This was a b-day present for myself. Apparently, this is a castle in Japan (also known as Castle of the White Heron), i never heard of it before the LEGO Architecture set was leaked. The structure itself is kind of a cool complex on about 400 acres. Apparently, this is just one section (the keep).

Overall, a decent, if a little bit expensive, set. There are 2125 pieces (including extras, and 150+ are just for the trees). It is about the size of the Giza Pyramid, but feels like a more solid base. Note: there is only the option of 1flowering cherry tree (the pink one). This took me about 6 hours. Yes, i did make a few mistakes, that i didn't correct - and i might be missing 1 piece (a purple 1x1 tile).

Yet Another $1B+ Lottery Jackpot

 The Mega Millions jackpot climbed to an absurd $1.25 billion. Yet another post about how when i win "i'm going to try and take over the world" (not really, most of the world would be useless to me). Is it time to crank that Calloway song again ("I Wanna Be Rich")?

A $1.25 billion early birthday present would be nice. Who is anybody kidding, i (and most people) would take the $625 million cash option. i assume nobody will win until Tuesday but might as well buy the dream for a couple of days.

i still wish the price of a ticket and odds would be halved.

Why am i buying a lottery ticket when there is a very real chance of a coming financial crisis?  i'm kind of betting against my expectations. But, winning would be cool. i'm sure if i did actually win it would be like my spirit cartoon character Wile E. Coyote catching the Road Runner. Congratulations, you won the lottery - now what (winning could create different kinds of problems). Either that or it would turn out Alanis Morisette "Ironic".